Fidelity Bank Plc has vowed to take legal action against a publication alleging that the purchase of 18,000,000 units of shares by its Managing Director and Chief Executive Officer, Dr. Nneka Onyeali-Ikpe, was done with bank funds.
The bank recently described the report and allegation as malicious and sponsored, and Nigerians have been reacting.
Speaking via a press statement signed by the bank’s Divisional Head, Brand & Communications, Meksley Nwagboh, the institution revealed that it was a very misleading article filled with false allegations.
Meksley said that Fidelity Bank Plc is a publicly quoted company regulated by the Nigerian Exchange Group (NGX) and subject to the Listing Rules of the NGX as well as regulations issued by the Securities and Exchange Commission (SEC).
According to him, neither the bank nor its MD/CEO has ever engaged in insider trading at any time, and the truth of the matter is that Dr. Nneka Onyeali-Ikpe funded the referenced share purchase transaction from personal sources, not via a loan or bank funds.
“The transaction was conducted strictly in accordance with the Listing Rules of the Exchange and the regulations guiding insiders’ dealings in the shares of publicly quoted companies.
The transaction was duly disclosed and published on the trading floor of the NGX in accordance with the Listing Rules.
Similar transactions are undertaken by insiders of various publicly quoted companies virtually on a daily basis and published on the Disclosure Portal of the NGX,” it read.
Meksley further noted that in addition to the SEC and NGX rules and regulations on insider trading, the bank has a documented internal insider trading policy that ensures its “insiders” and their “connected persons” transact in the company’s shares only when trading in its securities is permitted.
Fidelity Bank then assured customers that the source of the said publication would definitely be sued to safeguard the reputation of the company.
“Furthermore, we shall pursue all legal remedies available to us in relation to these malicious and sponsored publications, which were clearly intended to defame the character of our Managing Director/CEO and cause reputational damage to the institution,” it added.
